NZ Timber Sector Gains Relief as US Tariffs Spare Radiata Pine Exports

Highlights:

• New Zealand timber exports to the US worth NZ$358 million in 2023, up NZ$128m since 2019
• US tariff exemption offers temporary relief for radiata pine producers
• Forestry sector urged to remain vigilant amid uncertain trade conditions

US Excludes NZ Timber from New Tariffs—for Now

New Zealand’s timber exporters, including major players like Lowe Corporation Limited (NZX: LOW), have avoided immediate impacts from the United States’ latest round of tariffs, offering much-needed relief to the sector. The exemption is particularly important as the US has become a growing destination for New Zealand's radiata pine, despite China remaining the dominant market.

At the time of writing, exports of radiata pine products to the US were valued at NZ$358 million in 2023—up NZ$128 million since 2019. The United States now accounts for 6% of New Zealand’s total forestry exports, trailing only China at 57% and Australia at 9%.

US Market Key to Growth Despite China Dominance

While China remains the primary destination for over half of New Zealand’s timber exports, the United States is viewed as a high-potential growth market. The tariff exemption helps preserve that trajectory, allowing exporters to continue tapping into North American demand without the threat of increased costs and trade barriers.

Industry experts had feared the US would impose duties that could erode competitiveness and hurt future trade deals. The news of New Zealand’s temporary exclusion from these measures has been welcomed as a sign of stable trade relations.

Industry Urged to Stay Vigilant

Despite the positive development, industry leaders caution that the reprieve may not be permanent. Trade dynamics can shift quickly, and businesses are encouraged to remain proactive in diversifying markets and investing in sustainable forestry practices to mitigate future risks.

The timber sector, a cornerstone of New Zealand’s export economy, continues to face global challenges—but this tariff exemption provides a buffer as firms look ahead to continued growth in the US market.

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